An interesting article from economics student on exchange rates
http://rapidrevision.co.uk/economics-student/2009/03/14/currency-wars-competitive-depreciations/
a) Why is a depreciating £ good for British exporters?
b) What effect would the depreciation have on those businesses who import goods in to the UK?
c) Using a S&D diagram, explain why the Swiss Franc has appreciated
d) Using a S&D diagram, explain the effect of the Swiss authorities policy “to purchase foreign currency on the foreign exchange market to prevent any further appreciation of the Swiss franc against the euro”
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment